The success stories of early crypto investors and crypto traders have become legendary. On the one hand, it is now quite obvious that cryptocurrencies are not going anywhere and you can invest in them. It’s a good news. And yet, do not forget about the bad news: digital assets are still classified as high-risk investments, just like 10 years ago. Moreover, this does not contradict the fact that converting ZEN to USD is now as easy as buying a ticket to a concert.
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Pros and cons of investing in cryptocurrency
Cryptocurrencies uniquely combine several characteristics of an attractive investment asset:
- Low market entry threshold.
- High liquidity.
- Active market development.
- Potentially high returns in a relatively short time.
- Anonymity.
The disadvantages of investing in cryptocurrency include high volatility and the risks of hacker attacks.
Investor’s first steps
Before you start cryptoinvesting, you have to:
- Explore the cryptocurrency market on your own. The meaning of investing is extremely simple: it is cheaper to buy, it is more expensive to sell. How did the price of the asset you are interested in change, what and how influenced its dynamics? This will help predict price movements, unless we are talking about a completely new token.
- Examine the possible risks. Ups and downs are normal in any market. The investor should always take action in advance to minimize possible losses.
- Select a coin to buy. You will have to study a huge amount of information: official developer resources, expert articles and latest news. First of all, you need to pay attention to the volatility and security of the coin. There are simply no clear criteria that would indicate the profitability of a coin.
Select a trading platform for the purchase of assets. Please note that not all popular platforms support the direct exchange of CAD to VR and other little-known tokens. There are coins that can only be purchased with cryptocurrency and this must be taken into account.
What is Bitcoin Gold
Technically, Bitcoin Gold is one of the hard forks of Bitcoin. It was launched at the end of October 2017. Bitcoin Gold was designed to be ASIC resistant. The creators of BTG wanted to make the coin minable on home devices. For this, a different hashing algorithm, Equihash, was used instead of SHA-256. BTG is indeed attractive to miners, but the network is not secure enough. During the existence of BTG, the network has already been subjected to successful 51% attacks twice, and this has undermined investor confidence in the coin.
BTG price history
At first, BTG traded above $400 per coin. In April 2018, the coin was worth just over $42. Ultimately, the price stabilized at a level close to $10 per coin. The periods of high BTG volatility coincided with the general growth of the cryptocurrency market in 2021. And yet the achieved local maxima are very far from the previous heights. The collapse of the price and its stabilization occurred simultaneously with the market.
At the moment, the positions of Bitcoin Gold look quite modest. The coin takes 104th place in the ranking of the most capitalized currencies. BTG is trading in a narrow price range close to $20 per coin.
Prospects for BTG
However, it is premature to write it off entirely. In 2021, the team announced the creation of a bridge between BTG and Polkadot. During the year, the network successfully repelled several hacker attacks; in the near future, it is planned to introduce the Lightning Network, which may become an incentive to use the coin as a convenient means of payment. Past examples of relative stability and the low price of the coin may increase its popularity during the economic recovery.
Bitcoin Gold vs USDT
Hypothetically, BTG can bring profit in the future, although now the prospects for the coin are rather vague. You can include it in the investment portfolio at your own peril and risk, but in small volumes.
USDT is part of the stablecoin group and is actually a digital version of the USD. For this reason, the coin is more suitable for profit taking and investment protection for a period of high volatility than as a long-term profitable investment.